Fifteen care home and nursing home providers have been named by the Government for failing to pay the National Minimum Wage, with 738 workers collectively owed more than £101,000 in unpaid wages, according to data published today.
The providers were among around 660 employers named in the latest enforcement action by the Department of Business and Trade, which saw nearly £4 million returned to more than 27,000 workers across the UK and £7 million in penalties issued.
The providers were among around 660 employers named in the latest enforcement action, which saw nearly £4 million returned to more than 27,000 workers across the UK. While some of the largest cases involved employers in sectors such as retail and hospitality, according to the latest ‘naming round’, care home, nursing home and residential care providers were found to owe a combined £101,623 to staff. The average underpayment per provider was £6,775, while an average of 49 workers were affected at each organisation.
The largest number of care workers affected was at Cardiff-based Oakville Care Limited, operator of Romilly Nursing Home, where 144 staff were identified as having been underpaid, the data showed. Red Firs Carehome Limited, which operates Strawberry Field Care Home in Derby, were named as the second largest adult social care provider by number of workers underpaid (111), while Manchester-based Loven Care Homes Limited were the third largest with 82 affected workers.
Together, those three providers accounted for 337 workers, representing almost half of all care-home staff affected in the sector.
Government steps up enforcement
The naming round is the first since the creation of the Fair Work Agency, the new employment rights enforcement body established through the Employment Rights Act.
Department for Business and Trade Business Secretary Jonathan Reynolds said: "The best businesses know that looking after your workers isn't just the right thing to do, it's the smart thing to do, building the stronger, more successful businesses that drive growth in every postcode.
"Most employers already understand this, and I want to work with them to ensure they have every piece of guidance and support available to help them follow the rules.
"Short-changing your staff isn't a shortcut to success and we are determined to stamp it out."
Department for Business and Trade Minister for the Future of Work Kate Dearden said: "Underpaying your staff is illegal, and we will not let workers foot the bill for their boss failing to follow the rules.
"We're making sure workers get the hard-earned pay they deserve, and where employers fall short, they will be held to account,” she added.
Three of the named organisations were nursing homes, while five were residential homes.
Fair Work Agency Advisory Board chair Matthew Taylor said employers should review their payroll systems to avoid similar breaches.
"This naming round is an important reminder that paying the minimum wage is not optional, it is the law," he said.
"We are urging all employers to check their payroll, review their processes and correct any mistakes now, so every worker receives the pay they are entitled to."
